Finding 1094446 (2024-001)

Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we were not able to verify that the City performed the suspension and debarment verification. Questioned Costs: None. Context: The City did not maintain documentation of the suspension and debarment verification for four out of the five samples tested. However, none of the sampled vendors were suspended or debarred as of the City’s verification performed during the audit. Cause: The City did not have controls in place to maintain the proper documentation. Effect: There is a potential the City could contract with a disbarred or suspended entity if the verification is not performed. Recommendation: We recommend the City perform suspension and debarment procedures on all vendors with which it plans to enter into a covered transaction and maintain the documentation as evidence that the requirement was fulfilled. View of Responsible Officials: There is no disagreement with the audit finding.